Car finance but with 5 yr old settled defaults

bennyandclarence

Hi all

I am wondering if you could help/ steer me in the right direction, pardon the pun!

Following a disaster with a couple of cheap unreliable cars and now going through small claims, I now really need to purchase a newer and more reliable car. I drive for work a LOT and also my workplace is inaccessible by public transport.

When my claim for the old car is won in court (it will be, but I need to go through the formal process as the dealer has not responded otherwise) I will have £1500 to put down as a deposit on a newer car.

My problem is that although for the past 5 years my credit record is spotless (paying off most/ all of my credit cards every month, using overdraft but never going over the limit), there are 2 settled defaults. They will drop off within a year but until they go I find it SO hard to get credit. I couldn't even get a £200 extension on my overdraft recently (and this was only due to the liability car's head gasket going for the 2nd time in 3 months- totally not expected).

What are my chances of getting a newer car through a reputable dealer with a £1500 deposit? I don't want to spend any more than £5k really but I should be able to get something very decent with that sort of money. Is car finance easier to get because they secure the loan on your car until you have paid it off?

Thanks in advance

Claire

jonesMUFCforever

First of all don't count your chickens! Even winning does not mean you get a penny - collection of debt is much harder than winning in court.
That £1500 deposit may never materialise.
If you drive a lot for work can they not provide you with a works car?

You may well get finance through a dealer rather than a high street lender because of your previous credit history but expect the rate to be high.
Your finances appear already highly stretched and I would advise caution before taking on any large loans.

shortbackandsides

bennyandclarence wrote: »

Hi all

I am wondering if you could help/ steer me in the right direction, pardon the pun!

Following a disaster with a couple of cheap unreliable cars and now going through small claims, I now really need to purchase a newer and more reliable car. I drive for work a LOT and also my workplace is inaccessible by public transport.

When my claim for the old car is won in court (it will be, but I need to go through the formal process as the dealer has not responded otherwise) I will have £1500 to put down as a deposit on a newer car.

My problem is that although for the past 5 years my credit record is spotless (paying off most/ all of my credit cards every month, using overdraft but never going over the limit), there are 2 settled defaults. They will drop off within a year but until they go I find it SO hard to get credit. I couldn't even get a £200 extension on my overdraft recently (and this was only due to the liability car's head gasket going for the 2nd time in 3 months- totally not expected).

What are my chances of getting a newer car through a reputable dealer with a £1500 deposit? I don't want to spend any more than £5k really but I should be able to get something very decent with that sort of money. Is car finance easier to get because they secure the loan on your car until you have paid it off?

Thanks in advance

Claire

good rate finance for cars at the moment is very hard to get unless you have spotless credit history,but if your willing to take a car for 5k and pay back 12k then its pretty easy if your prepared to go down that road which i would not recommend.
remember car dealers use the likes of santander and other low rate companies for where people need very good credit reports,so remember cant see these companies giving you a car with a default.
also it dont matter how much deposit you put down the dealer dont do the finance he apply for finance on your behalf

MrsTinks

And to throw another spanner in your works - are you sure it's "just" the 2 settled defaults? My husband has a settled default (which annoyingly he won't fight to have taken off as it should have never been put on his record grrrrr) and for the last 4 years since it was registered he's not had any problems getting credit - especially not car finance... due to his job he changes cars regularly as he racks up the miles and he gets a car allowance for them... however the credit is obviously in his name...
And since the default was registered and settled he's bought 3 other cars - one last week...
So... you may or may not win this in court, you may get the pay out, however - you need to find out if there is anything else that makes you a less than ideal candidate for a car loan... I would say there may be...

Apples2

carfinance wrote: »

If you need a new car and don't have a big deposit try applying with Car scam artists 247 -

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